OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Class III milk futures have not had solid support from underlying cash. Cheese prices have remained choppy with current low prices reflecting supply and demand. Some talk continues to float around that current prices are the result of price manipulation. There is no evidence of that as milk production, manufacturing, and inventories indicate there is sufficient supply for demand. That may change with continued low prices as milk production will eventually decrease as culling will increase and milk supply will tighten. The best scenario would be for both domestic and international demand to improve. Currently, milk output is steady to improving with sufficient supply for both bottling and manufacturing.
CHEESE:
There is a strong possibility cheese prices may see further strength Tuesday. The rebound of blocks for the low during spot trading may increase buyer interest today. However, traders may be cautious as price increases have been short lived. They may not buy aggressively into the market even if cheese prices increase.
BUTTER:
Price may show further weakness as buyers have stepped back from being aggressive. There remains interest in buying except at lower prices. Increased churning activity will keep the market supplied, leaving little reason for buyers to become concerned over supply. Inventory is slowly building.
